Infineon Brings Next Generation of its Ultra-Low-Cost Mobile Phone Chips to the Market; X-GOLD110 Offers World’s Highest Integration for Mobile Phone Chips

Neubiberg, Germany – January 20, 2009 – Infineon Technologies AG (FSE/NYSE: IFX) today announced its third Generation of ultra-low-cost (ULC) mobile phone chips. The X-GOLD™110 is the world’s highest integrated and very cost effective one-chip solution for GSM/GPRS ultra low-cost phones. With system costs (Bill-of-material) for mobile phone manufacturers lower than 20 per cent compared to existing solutions, Infineon once again sets standards for the mobile phone industry.

“We are very proud to successfully introduce our third Generation ULC solution”, says Weng Kuan Tan, Division President for the Wireless Solutions Division at Infineon. “We see an ever growing demand in the ultra low-cost and entry phone segment. Our solutions perfectly serve the needs of network operators and mobile phone manufacturers who are offering their services in emerging markets, where cost efficient solutions are the most important criteria to serve the mainly lower income population. With our solutions, we enable the people in these regions to participate in the economic progress of their countries by making low cost mobile communication a reality.”

The X-GOLD110 is the heart of Infineon’s mobile phone platform XMM™1100 offering optimized functionalities on a small footprint 4-Layer-PCB. The new platform supports colour display, mp3 playback, FM Radio, USB charging and is prepared for Dual-Sim and camera solutions.

The XMM1100 helps to shorten internal research cycles at the phone manufacturers from more than one year to 3 to 4 month, due to the high amount of know-how integrated in the platform and the almost ‘plug-and-play’ qualification. It furthermore optimizes production cycles by reduced component count from 200 to 50.

Samples of the X-GOLD110 and the XMM1100 are available in Q2, 2009. Volume production starts in the second half of this year.

Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, communications, and security. In the 2008 fiscal year (ending September), the company reported sales of Euro 4.3 billion with approximately 29,100 employees worldwide. With a global presence, Infineon operates through its subsidiaries in the U.S. from Milpitas, CA, in the Asia-Pacific region from Singapore, and in Japan from Tokyo. Infineon is listed on the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Infineon currently holds a 77.5 percent equity interest in Qimonda AG. Qimonda is separately listed on the New York Stock Exchange under the ticker symbol “QI” .